The value of the Indian Premier League (IPL) Ecosystem registered a 75% growth since 2020 and now stands at $10.9 billion, stated the ‘Beyond 22 Yards’ report released by D and P Advisory. The IPL Ecosystem represents the value generated by the IPL as a business. As per the report, the IPL was valued at $6.2 billion in 2020 and this valuation makes it a Decacorn (a business with a value of more than $10.0 billion) within 15 years of inception.
Since its launch in 2008, IPL has reimagined the nation’s cricket competition, Santosh N, managing partner, D and P Advisory, stated. “IPL 2022 witnessed some major milestones and captivating games throughout the season. The renewed media rights deal was a major contributor towards a substantial jump in value for a relatively young league like IPL,” he added.
IPL media rights for 2023 to 2027 were auctioned for the first time among different broadcasters, which broke the monopoly of one company, the report said. Additionally, it added that the league sold media rights at $6.2 billion, which registered a three-fold jump compared to the previous five-year cycle in 2017. Moreover, the report observed that the tournament in 2022 registered a combined 426 million views across television and over-the-top (OTT) platforms.
Since its inception, the report found that the average price of a team has seen a 16-fold jump with the Gujarat Titans and Lucknow SuperGiants bought at a combined value of $1.6 billion. And to continue with the momentum generated, the report stated that the Board of Control for Cricket in India (BCCI) has announced the launch of the Women’s Indian Premier League. The base price for a franchise is Rs 400 crores (around $50 million), the report claimed.
Moreover, the report found that in terms of advertising, the IPL is significantly behind in terms of ad rates, when compared with some of the other global sporting leagues. For example, a 10-second slot for an ad during IPL 2022 cost nearly $20,000, whereas the ad rates for the same time slots in National Football League, English Premier League and Major League Baseball were over $1,00,000. The report further mentioned how IPL has a lot more space to grow in the future provided broadcasters are able to monetise the content well.
“The value appreciation may not be as fast as seen in the earlier years”, the report stated with regards to the BCCI forging and locking new broadcasting deals for the next five years and foreseeing a more stable phase in terms of the value of the IPL Ecosystem.
Additionally, the report said that the IPL team owners are looking to replicate the multi-club ownership model as part of their long-term strategy. This includes the Knight Riders Group owning the right to Trinbago Knight Riders in the Caribbean Premier League, and a franchisee of the UAE T20. Moreover, it plans to build cricket stadiums in Los Angeles, USA, in partnership with Major League cricket, the report asserted. Reliance Industries, the owners of Mumbai Indians, recently unveiled two new franchises in UAE’s International League T20 and Cricket South Africa T20 League.
The report concluded by stating that for the growth trajectories to maintain the aforementioned momentum, all teams need to continue broadening their footprint, forming relationships, and generating revenue opportunities in different markets.